Manufacturing sector continues to struggle

By DOMINIC JEFF
Published on Wednesday 12 October 2011 16:36

Britain’s manufacturing sector shrank for the third month in a row in August, according to official figures, adding to fears of a double-dip recession.

Manufacturing output fell by 0.3 per cent between July and August, after declining 0.2 per cent in July and 0.1 per cent in June, according to the Office for National Statistics. Production was still 1.5 per cent higher on the year.

David Kern, chief economist at the British Chambers of Commerce, said: “In view of the worsening global economic background, the manufacturing output figures, while disappointing and weaker than expected, are not surprising.”

He said the Bank of England’s decision to restart its money-printing programme was helpful, but not sufficient to tackle Britain’s economic stagnation, and called on the government to help ease credit terms for SMEs.

The news came as Business Secretary Vince Cable pledged more than £140 million for a manufacturing technology and innovation centre. He also unveiled plans for competitions to fund new technological products, and investment into developing low-carbon vehicles.

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